Question

Cisco purchased Pure Digital, maker of the Flip video recorder, but ended up shutting the unit down a little over two years later. The reason for Cisco's failure was:a. Envelopment. Smartphone manufacturers and music players began to offer video recording features, enveloping the benefit provided by Pure's gear in their offerings.b. Network effects. Late-arriving Cisco could not compete against the dominance of existing, incompatible standards created by early-moving incumbents.c. The Osbour Effect. Cisco preannounced a product and no one wanted its current offerings.d. Staying power. Consumers weren't convinced a small firm like Cisco could win in the market.

Answer 1

A

Step-by-step explanation:

Envelopement in business is defined as the entrance of the producer of a particular line of product into another market , incorporating the features of the new product into its already existing line to achieve a multi-platform.

This is especially common to the producer of mobile phones as they can now have features of music and video players incorporated into mobile phones.

In these scenario, the smartphone and music players manufacturer began to offer video recording features , taking over the benefit provided by Pure gear's offering.

In this situation , it will be cheaper and even more portable to use a video recorder and a smart phone . This apparently was the threat to the survival of the Flip video recorder in the market